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Vehicle Loan NOC / Hypothecation Termination Letter

At a glance

Price
Free till 31 Dec
Stamp duty
Punjab and Chandigarh: no stamp duty is payable on this Letter.
Registration
Punjab and Chandigarh: not registrable under the Registration Act, 1908.
Witnesses
Punjab and Chandigarh: no witness is needed.

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Also called

  • Hypothecation Termination Letter
  • Vehicle Loan Closure NOC
  • No Objection Certificate for RC Hypothecation Removal
  • Form 35 Covering Letter
  • Bank NOC for Vehicle Loan Closure
  • वाहन ऋण एनओसी
  • हाइपोथिकेशन समाप्ति पत्र
  • ਵਾਹਨ ਲੋਨ ਐਨਓਸੀ

When you need it

A vehicle loan is fully repaid or foreclosed, and the financer's charge (hypothecation) noted on the vehicle's Registration Certificate now needs to come off. This Letter is the financer's own written confirmation that the loan account is closed, with nothing outstanding, and its no-objection to the hypothecation entry being removed — the document a bank, NBFC or other financer issues to the borrower for that purpose, and which the borrower then takes to the Registering Authority.

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Hypothecation of a vehicle to its financer, and its termination once the loan closes, are governed by Section 51 of the Motor Vehicles Act, 1988 and the Central Motor Vehicle Rules, 1989, which apply uniformly across India. The Rules prescribe Form 35 for notifying termination of a hypothecation, signed by both the registered owner and the financer — this Letter is the financer's covering confirmation and no-objection, not a substitute for Form 35 itself, which the concerned office will still separately require in whatever format it currently prescribes. In Punjab this is filed with the Sub-Divisional Motor Vehicle Officer or District Transport Officer of the district where the vehicle is registered; in Chandigarh, with the Registering Authority, Union Territory of Chandigarh. Not for confirming closure of a loan that was never secured against the vehicle at all, for which a plain loan closure request to the lender is the document; not for the affidavit a borrower or buyer may separately need to swear when the RC transfer itself is filed, for which the RC Transfer Affidavit is the document; and not for the sale of the vehicle itself once the hypothecation is cleared, for which the Car / Bike Sale Agreement is the document.

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What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

Punjab and Chandigarh: no stamp duty is payable on this Letter. It confirms a loan account is closed and records the Financer's no-objection to an entry being removed from a Registration Certificate; the hypothecation itself already stands discharged, by operation of the loan and hypothecation agreement's own terms, once the Loan is repaid. This Letter does not itself create, transfer or extinguish any right, so it is not an instrument within Section 2(14) of the Indian Stamp Act, 1899.

Registration

Punjab and Chandigarh: not registrable under the Registration Act, 1908. Section 17 of that Act reaches instruments concerning immovable property and specified transactions; a letter confirming closure of a vehicle loan and consenting to removal of a hypothecation entry is not among them. "Registration" of the hypothecation, and of its termination, is a different thing under a different Act. The Registering Authority's own record is changed on Form 35 under the Central Motor Vehicle Rules, 1989, following Section 51 of the Motor Vehicles Act, 1988 — not under the Registration Act, 1908 at all, and not by this Letter alone.

Notarisation

Punjab and Chandigarh: not required. A financer's internal policy may ask for the signing officer's own authority to be attested separately, but the Letter itself needs no notarisation to be effective.

Witnesses

Punjab and Chandigarh: no witness is needed. This is a unilateral letter from the Financer, signed by its own authorised officer.

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VEHICLE LOAN NOC / HYPOTHECATION TERMINATION LETTER

Ludhiana, 3 April 2026

To,
Sukhdev Singh Bajwa
Rajwinder Kaur Bajwa
House No. 77, Civil Lines, Ludhiana 141001

Also for production before the Registering Authority named in paragraph 4 below.

SUBJECT: No-objection to termination of hypothecation over Vehicle bearing registration number PB03 CK 5541 — Loan Account No. HDFCAUTO0041178

Dear Sir / Madam,

  1. 1. THE LOAN

1.1 You availed a loan from HDFC Bank Limited, a banking company within the meaning of the Banking Regulation Act, 1949, of SCO 12-13, Feroze Gandhi Market, Ludhiana 141001 (the "Financer"), under Loan Account No. HDFCAUTO0041178 (the "Loan"), against hypothecation of the Vehicle described in paragraph 2 below.

  1. 2. THE VEHICLE

2.1 Make and model: Hyundai Creta SX, diesel. Registration number: PB03 CK 5541. Chassis number: MALBM51BLNM112233. Engine number: D4FE9876543.

2.2 The Financer's hypothecation over the Vehicle was endorsed on its Registration Certificate on 1 April 2026.

  1. 3. CLOSURE OF THE LOAN

3.1 The Borrower has repaid the entire amount due under the Loan, together with interest and other charges, and the Loan Account stands closed with no amount outstanding.

3.2 The Loan stood closed, with no amount outstanding, with effect from 2 April 2026.

  1. 4. NO-OBJECTION

4.1 The Financer has no objection to the hypothecation over the Vehicle being terminated and removed from its Registration Certificate, and confirms that the Financer holds no further claim, charge or interest of any kind over the Vehicle.

4.2 This Letter may be produced before SDM-cum-Registering & Licensing Authority, Ludhiana (West) in support of an application to record termination of the hypothecation.

  1. 5. FORM 35 AND THE RTO PROCESS

5.1 This Letter is a covering confirmation and no-objection. It is not itself Form 35 prescribed under the Central Motor Vehicle Rules, 1989, and does not replace it — the Registering Authority requires Form 35 to be separately signed by both the registered owner and the Financer, or its authorised officer, before the hypothecation entry is removed. The Financer shall sign Form 35, or any further specific letter in the form the Registering Authority prescribes, on request.

5.2 A fee fixed under Rule 81 of the Central Motor Vehicle Rules, 1989 is payable to the Registering Authority for recording termination of the hypothecation. That fee is revised from time to time by central notification and is payable at the counter or through the Parivahan portal, and not to the Financer.

  1. 6. WHAT THIS LETTER DOES NOT DO

6.1 This Letter confirms closure of the Loan and gives the Financer's no-objection to removal of the hypothecation entry. It does not discharge the Borrower from any obligation to the Financer other than the Loan, does not affect the insurer's own record of the Financer's interest in the Vehicle — which the Borrower should separately have updated with the insurer — and does not itself transfer ownership of the Vehicle to any other person.

Questions about this document

Does the Vehicle Loan NOC / Hypothecation Termination Letter need stamp paper or stamp duty in Punjab and Chandigarh?

Punjab and Chandigarh: no stamp duty is payable on this Letter.

See the full position on stamp duty, registration and witnesses
Does the Vehicle Loan NOC / Hypothecation Termination Letter need registration in Punjab and Chandigarh?

Punjab and Chandigarh: not registrable under the Registration Act, 1908.

See the full position on stamp duty, registration and witnesses
What does the Vehicle Loan NOC / Hypothecation Termination Letter cost on Kaagazaat?

Free till 31 Dec.

Launch period: downloads are free until 31 December. Nine everyday papers stay free for good.

Does the Vehicle Loan NOC / Hypothecation Termination Letter need witnesses?

Often needed with this document

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